Saturday 18 May 2013

What is a fixed asset rollforward?

Nature of a fixed asset roll forward 

Fixed assets (also called property, plant and equipment) may represent a significant number on the balance sheet of a company. Thus, it is critical to maintain good records about fixed assets and related fixed asset activity. Usually, fixed assets are recorded in several balance sheet accounts. Each fixed asset account is devoted to a particular asset class (e.g., land, buildings, leasehold improvements). There are also corresponding accounts for accumulated depreciation (e.g., accumulated depreciation for buildings, leasehold improvements).

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